First Steps to Solvency

warby68

enthusiasticsaver said:

  alt80 said:

@ladyholly

.... Maybe if you took a bit of time to understand how leveraging actually works you’d also have a 7 figure portfolio?

Just to be clear you do not have a 7 figure portfolio.  As presumably approx 80% of it is borrowed as you are up to maximum LTV then merely 20% of the BTLs are yours and the rest is owned by the bank until you pay your debt off.  
 

And in any type of forced or stressed scenario, that 20% for you will evaporate to nil.
It isn't actually the 'norm' as you said to have PGs on the line for resi investment - its for when something is a bit stretched or weak. People use SPVs or whatever to ringfence and keep the personal out of it but you've had to cross-collateralise.

alt80

Got home to find some sales had happened so another £1050 paid off the Barclaycard. Less than a month ago £9500 owning now £7150 actually buzzing about that tbf. 25% nearly cleared off that. Real good start to the weekend. I was really tempted to throw another £150 at it and get down to £7k but would have put us into overdraft by the end of the month which is 0% too but what’s the point borrowing from one 0% to pay another? Hoping the first £10/15k from sales goes quite quickly and if I keep payments at £1k thereafter will clear it a lot quicker. 

I’ve spent this week pushing my wife and family time away again. The more I do that the more my behaviour is affected for the worse. We had our film evening tonight because I was in a better frame of mind after clearing the money off the card. Son was surprised and I hate myself right now for my behaviour affecting his. Read a comment I made on someone else’s diary stating I really admired how he always puts his family first and I’m trying to put the effort in. The commitment wasn’t made lightly or because I planned to put the effort in for a couple of days then send my family to in laws so I could configure AMs. I take them for granted and shouldn’t. Yeah I’ve been on the defensive because some things people have commented hit a nerve just seemed like a character assassination for the sake of it tbh.

@enthusiasticsaver  / @warby68 think both of you were just trying to shame me re portfolio. Not really called for imo.

PGs are the norm when LTVs are over about 60/65%. I suppose it is where the lender considers it a bit more stretched than they’d like without any liability falling to the director. I would like to get to the point of no PGs tbf but ok with the risk.

PassElephant

No one has anything but a wish for a better outcome for you in their posts .
It isn't shaming to repeat stuff you have posted about your BTLs.
You are doing well. 

alt80

Thanks @PassElephant seems there’s plenty on here who’d love to ‘see’ me fail. Lots of good posts that have made me focus my mind; I know I would have probably found an excuse to spend the money from things we had sold otherwise tbf.

I know I’m not a great family man don’t need a constant reminder I’m a s**t husband/ dad.

PassElephant

No one here wants you to do anything but rise.
And you can .
 Look after the people who love you. You need them. 
You are doing well .

katsu

People who frequent this forum don't want to see you fail. We want to cheer you on to succeed in getting debt free.  Everyone wants you to see things truly differently and to get the counselling help you need.   Those of us who are DF come back here to help others and pay back the help we received.  You'll be doing that too one day. 

I've changed my mind set and my life thanks to Martin and this forum.  He transformed so many of our lives.  I was terrified of my bills and bank statements once. Now I'm earning good money and saving every month.  

 The Katsu house is the ordinary house you can't imagine wanting, but to me it's my security. Knowing it's paid off and secure helps me deal with work stress as I know I can walk out if I want to.  I'm not trapped in needing to sustain an income of X, I'm free. 

Mr Katsu and I smile about what people must think of our income as our lifestyle is so apparently  modest.  Some Katsu relatives can't understand how we live without credit and have paid off the mortgage already - your money goes so far when you aren't paying debt and interest. 

We have a good income and got MF relatively young thanks to a decision that we are done with debt and when I see well paid people at work who are trapped or vulnerable as they need to keep the high income,  I'm sorry for them, not envious.  There are more higher earners who are aiming for FIRE or working out their own plans,  trust us.  

Keep posting and keep going with the counselling etc - and maybe accept that the sharp reactions are about useful issues for you to reflect on, not nasty people having a go at you.  

Good luck! 

monetxchange

Honestly, nobody wants to see you fail on here. Why would be bother posting? To be honest we've clearly got very different views on life and maybe wouldn't be pals in real life (!) But I always continue to come on here to encourage people at their lowest.

 I really do hope you continue with the counseling as that's one of your issues manifesting I think - your fear of failure and thinking others wish you to fail too etc. 

Also second the maybe thinking of hobbies going forward. Not trying to sound rude, but it sounds from a lot of these posts that you really could do with a good friend that you could turn to. Someone that you're not married to or is a friend from business that you end up financially competing with our even your parents who you feel the need to impress because they like showing you off. Maybe a new hobby or path would help you find that. We all need someone we can be our absolute true selves with, you especially.

warby68

@alt80
Not shaming you, not at all 
Trying to keep it real and to focus on your risks IF you don't fix the mindset.
You were the one firing back about your 7 fig portfolio to other posters and saying they don't understand - unfortunately its an illusion whilst its fully leveraged and you say yourself you're not keen on leaving the money in to pay it down. We have one non resi asset, low 6 figures but more equity and more income. Who is better off? In the long run it should be you by a mile, but right now its me.
You know all this. Stop doing  the don't pick on me thing - tell us you've got it and are going to make it a huge success with your changing mindset. That's what we want to hear. People in real life might like to see you fail. People here only want success for you, I certainly do. But you're a hard nut to crack

getmore4less

alt80 said:

I did 10.5k miles for just over £45k outlay on the Jag, so under £4.30/mile lol. 

Have you included all costs there? I thought £45k was the financing cost from the previous posts,

getmore4less

enthusiasticsaver said:

  alt80 said:

@ladyholly

.... Maybe if you took a bit of time to understand how leveraging actually works you’d also have a 7 figure portfolio?

Just to be clear you do not have a 7 figure portfolio.  As presumably approx 80% of it is borrowed as you are up to maximum LTV then merely 20% of the BTLs are yours and the rest is owned by the bank until you pay your debt off.  
 

Previous posts the last refinance took it up to 75%(ish) so ~£300k  equity enough to pay of the residential mortgage overall the property owned, residential and BTL, is around debt free.
That does rely on being able to liquidate the portfolio at that value,  net liquid value will depend on the market and tax situation for the Ltd business(how that would handle gains and other taxes extracting the money)
as long as the rental cashflow does not dry up  From what has been said that business is pretty safe with good reserves on top of the extraction of around 6% ROI to fund lifestyle(that could be stopped if the business had cashflow issues)

That may be an option to rethink the relationship with the BTL business, on paper have that fund the residential and itself as a combined concern, that ring fences any money coming out of the BTL to pay the mortgage on the residential.